Disaster Relief

The President declared a Major Disaster for the State of Alabama on March 28, 2020 as a result of the COVID-19 Pandemic. The Internal Revenue Service allows Owners of multifamily housing developments financed with AHFA-administered Housing Credits to extend the carryover 10-percent basis requirement or the placed-in-service date requirement due to a major disaster.

• FEMA DR-4503-AL Public Notice 001 (04-14-20)

The U.S. Department of Homeland Security’s FEMA announced that federal emergency aid has been made available to the state of Alabama due to the emergency conditions in the area affected by Hurricane Michael beginning on October 10, 2018.  To see a copy of the Emergency Declaration for Alabama view the link below.

• FEMA Release HQ-18-151 (10-13-18)

Low-Income Housing Tax Credits

The Internal Revenue Service allows owners of multifamily housing developments financed with AHFA-administered Housing Credits to extend the carryover 10-percent basis requirement and/or the placed-in-service date requirement due to a major disaster, subject to certain terms and conditions. To view the revenue procedure that provides temporary relief from certain requirements of Section 42 of the IRC for agencies and owners please review the link below.

• IRS Notice 2021-12 provides temporary relief of certain requirements of Section 42 due to a major disaster
• IRS Rev. Proc. 2014-49 provides temporary relief of certain requirements of Section 42 due to a major disaster

To request temporary relief from certain requirements of Section 42 of the IRC, owners should submit the following application to AHFA:

• Application for Temporary Relief in Major Disaster Area